1. What is Ontario HST?

The Harmonized Sales Tax (HST) in Ontario is a combined federal and provincial sales tax of 13%. It applies to most goods and services purchased in Ontario, with some exceptions for basic groceries, prescription drugs, and certain medical devices.

2. How Does the Calculator Work?

The calculator uses the simple HST formula:

Where:

• \( Amount \) — The pre-tax price of goods or services
• \( 0.13 \) — The Ontario HST rate (13%)

Explanation: The calculator multiplies your pre-tax amount by 0.13 to determine the tax, then adds this to the original amount to show the total cost.

3. Importance of Sales Tax Calculation

Details: Understanding sales tax helps with budgeting, business accounting, and ensuring proper tax collection and remittance for businesses.

4. Using the Calculator

Tips: Enter the pre-tax amount in Canadian dollars. The calculator will show both the tax amount and the total including tax.

5. Frequently Asked Questions (FAQ)

Q1: What purchases are exempt from HST in Ontario?
A: Basic groceries, prescription drugs, certain medical devices, and some childcare services are exempt.

Q2: Is HST the same across Canada?
A: No, HST rates vary by province. Ontario's is 13%, while other provinces have different rates (e.g., 15% in Nova Scotia).

Q3: Do tourists pay HST in Ontario?
A: Yes, but non-residents may be eligible for rebates on certain goods and accommodations.

Q4: How often must businesses remit HST?
A: It depends on the business's revenue, ranging from monthly to annually.

Q5: Can I claim HST credits?
A: Low-income individuals and families may qualify for quarterly HST credit payments from the government.